The Exchequer Secretary to the Treasury (Andrew Jones)
I thank all the 30 or so hon. Members who have contributed to today’s debate for their very thoughtful speeches. I will make sure that all their points, suggestions and concerns—including the specific ones mentioned by the hon. Member for Blaenau Gwent (Nick Smith), my hon. Friends the Members for Stafford (Jeremy Lefroy) and for North Cornwall (Scott Mann), and especially my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon)—are raised with the relevant Departments. I gently say to the House that we have had many representations regretting what was not in the Budget, but I am not sure that we received so many in advance of it and before its details were set, even though my door was always open and I met colleagues from all parties.
I will focus my comments on housing. This is a Budget that builds a Britain fit for the future. It is one that aims to ensure that every generation prospers and can look forward to a better standard of living than the previous one. When he opened the debate, my right hon. Friend the Secretary of State for Communities and Local Government spoke very passionately about the importance of home ownership, and I simply could not agree with him more. Providing homes is key to building communities, and to giving families the stability and the security they deserve. Moreover, bringing home ownership back within the reach of first-time buyers is part of our broader intergenerational commitment to younger generations.
However, affordability is a problem. The average house price is now almost eight times the average person’s salary, compared with just 3.6 times two decades ago—in my own area, the ratio is over 14 times—and the number of 25 to 34-year-olds owning their own home has dropped from 59% to just 38% over the past 13 years.
The core of this problem is clearly a lack of supply. However, we have delivered 1.1 million new homes since 2010, including nearly 350,000 affordable homes, and the total housing supply reached 217,000 last year. It is worth noting that that was the first time in almost a decade that the 200,000 milestone had been reached. We of course need to go further, and to make sure that more homes are built. This Budget sets in train a comprehensive set of reforms to address the failure of, I must say, successive Governments to provide enough homes.
Andrew Jones
I simply say to my hon. Friend that I know he has worked very hard on this issue. I welcome his work, and he has made a very valuable contribution to the housing debate.
This Budget sets out an ambition to deliver 300,000 new homes every year, which is 40% more than the current output and 50% more than the target we were left by Labour.
Wera Hobhouse
I cited very stark figures showing that social homes are not being built: 32,000 were built in 2011, but only 5,000 were built in 2016. Will the Minister address that problem?
Andrew Jones
I point out to the hon. Lady that affordable home building has gone up by 27% in a year, and that is of course a key part of delivering a housing mix that will work for everybody. We need a series of effective planning reforms and substantial investment.
This Budget pledges more than £15 billion of financial support to boost housing supply over the next five years. It will open up new land, and get housing associations and councils building, including by lifting borrowing caps by £1 billion in high-demand areas. It will provide £400 million of funding for regeneration projects and to support SME developers. That brings the total amount of financial support available to at least £44 billion over this spending period. That support includes £40 million towards the development of the construction skills that we will need to deliver those homes.
The Budget also makes serious, sensible planning reforms to help towns and cities grow in the right way, while continuing to protect the green belt. We know that we cannot build new homes overnight, so it also introduces measures to support those who are looking to get on the property ladder now. The Budget has permanently removed the upfront cost of stamp duty land tax for all first-time buyers who are buying a home worth £300,000. That will save the average first-time property buyer nearly £1,700. That should be viewed not in isolation, but in the context of a balanced and broader package of supply and demand.
Those who wish to buy are not the only ones struggling in the current housing market, and many tenants in the private sector would like more security. We will work to understand the barriers to landlords offering longer, more secure tenancies, and then remove those barriers. There is also a £950 million budget to tackle homelessness in the spending period. Fixing our housing market is one of the most important issues that we currently face, and the Budget presents a balanced package of supply-side and demand-side reforms to do just that.
The second part of today’s debate was on public services. We have a great track record of delivering first-class public services, but in the time available I am able to comment on only two things and give two examples of such delivery. First, more than 1.8 million more children are being taught in good or outstanding schools—a significant achievement. Secondly, the NHS is treating more people every year for cancer, and the UK now has its highest ever cancer survival rate. We are doing all that while sticking to our credible plan.
I am running out of time so I will highlight one final point. We must continue to focus on our deficit, and the Budget highlights that both debt and deficit will go down in each year of the spending period. At the same time, we can expect the economy and rates of employment to grow—that is very positive. The Budget sets out how we are investing in the future. It tackles housing supply by getting Britain building, and it addresses the long-term issue of undersupply, while also providing relief in the near term for those who are struggling to buy now. It also backs our public services.
Yesterday, my right hon. Friend the Chancellor spoke about the opportunities and optimistic vision that lie ahead for our country. I will say just this: Britain’s future is bright, and this Budget makes it even brighter.
Ordered, That the debate be now adjourned—(Andrew Stephenson.)
Debate to be resumed tomorrow.